Student Loan Debt Help: What If You Can't Repay?

How repayments work

GOV.UK explains that you repay a percentage of your income above a threshold, and the threshold depends on your plan. Plans 1, 2, 4 and 5 are charged at 9% of income over the threshold, while Postgraduate Loan repayments are 6%. If you are employed, repayments are taken through payroll. If you are self-employed or complete a Self Assessment return, HMRC works out your annual repayment from the return. Thresholds are reviewed regularly, so check the current figures on GOV.UK.

Because repayments are linked to income, they stop when your income is below the threshold. If you earn less than the threshold or stop working, you do not repay. GOV.UK notes, however, that interest is still added even if you are not working.

Which plan do you have?

The plan depends on when and where you studied, and the type of course. Your Student Loans Company account or statement shows it. The plan matters because the threshold, interest and write-off period differ. If you are not sure, check your online account on GOV.UK.

What happens if you earn less or stop working

• Low earnings: If you earn below your plan's threshold, no repayment is due.
• No job: No repayments are taken, but interest still builds up on the balance.
• Overpaid: If your annual income ends up below the yearly threshold, you can ask for a refund at the end of the tax year, as GOV.UK explains.
• Self-employed: Repayments are worked out after your tax return, so keep your Self Assessment up to date.

Is a student loan treated like other debts?

Not in the usual way. A student loan is normally not reported like a credit cardHow Credit Cards Work in the UKHow UK credit cards work: interest, APR, minimum payments, interest-free periods, fees, Section 75 protection and how to use a card without getting into debt.Read more → or loan on your credit fileHow Credit Scores Work in the UKHow UK credit scores work: what the credit reference agencies record, what affects your score, why scores differ between agencies and what lenders actually see.Read more →, and the Student Loans Company does not collect it using bailiffsHow to Deal with Bailiffs: Your Rights and Their Limits (2026)Learn what bailiffs can and cannot do in England and Wales, the 14-day notice rule, current fees and how to respond.Read more → for missing income-contingent repayments. Loans are written off after a set number of years, which depends on your plan, or in cases such as death or serious disability. Check GOV.UK for the current write-off rules. Because repayments are tied to income, they are generally not treated as a priority debtPriority and Non-Priority Debts ExplainedLearn which UK debts are priority debts, such as rent, council tax and energy bills, which are non-priority, and why the difference matters.Read more → in a budget in the same way as rent or council tax, but you should still make sure the right amount is being taken. See priority and non-priority debts.

Should you overpay a student loan?

For many borrowers, the loan is repaid in full only if they earn well, and the rest is written off. In that case, overpaying can mean paying money that would have been written off. The right answer depends on your plan, income prospects and other debts. If you have expensive credit card debt, paying that first usually makes more sense. This is general information, not advice for your situation, so speak to a free adviser or use official calculators if you are unsure.

Problems to look out for

1. Wrong deductions: Check your payslip and your online account if repayments look wrong.
2. Employer errors: Ask your employer to correct a wrong plan type.
3. Overseas: If you move abroad, you may need to supply income details to the Student Loans Company.
4. Scams: Fraudsters pretend to be the loan company to take money or data. Only use official GOV.UK services.

Private and commercial student loans

Some students borrowed from banks or other private lenders. Those loans work like ordinary credit: you have a repayment schedule, interest and a credit record. If you cannot keep up, contact the lender and a free adviser. They can be included in solutions like a debt management plan. If you have a mixture of debts, a free adviser can help you work out an order. See how to deal with debt.

If you are struggling with other debts

A student loan is only one part of your finances. If you have credit cards, overdraftsOverdrafts Explained: Costs, Rules and AlternativesHow UK overdrafts work: arranged and unarranged, how interest is charged, the effect on credit files, the risks and cheaper alternatives to borrowing.Read more → or rent arrearsArrearsArrears are payments that were due but have not been made, such as missed rent, mortgage, council tax or loan instalments.Read more → alongside it, tackle those with a free adviser from StepChangeStepChange Explained: What It Does and How It WorksWhat the debt charity StepChange offers, how its free debt advice and debt management plans work, who it suits and what to expect when you contact them.Read more →, National Debtline or Citizens Advice. They can check whether you have enough income, whether the student loan is affecting your budget, and which solution fits. See free debt advice in the UK and debt help after redundancy.

A worked example

Sam graduated three years ago and now earns slightly above the threshold for his plan. Each month, 9% of the amount above the threshold is taken from his pay. When he loses his job for several months, no repayments are taken, though interest keeps adding to the balance. When he finds new work on a lower salary, his repayments fall. He also has a £2,500 credit card balance at a high rate, so he decides to focus extra money there rather than overpaying his student loan. The student loan runs in the background, tied to his income, while he clears the more expensive debt.

Checking your balance

Log in to your student loan account to see your balance, plan type and repayment history. Compare with your payslips to make sure the right amount is being taken. If something looks wrong, contact the Student Loans Company and your employer.